S 4129: Requires lending institutions that send unsolicited mail-loan checks to clearly state in solicitation letter the interest rate to be applied to such loan and to demonstrate the total cost of loan in a dollar amount, at interest rate, over periods of six months, one year, and three years.
The bill aims to improve the transparency of unsolicited mail-loan checks by requiring lenders to provide clear information to borrowers. Lenders must include a written statement on the face of each check, stating that a valid form of photographic ID is needed to cash or deposit the check. The bill also prohibits lenders from referencing the enclosed check on the outside envelope and makes the checks non-transferable. Furthermore, lenders must disclose the transaction fee, interest rate, and expiration date on the mail-loan check, as well as any additional information required by the superintendent. The bill requires lenders to provide the interest rate and total cost of the loan in a clear and easily understandable format, including a table demonstrating the total cost over different time periods. The bill takes effect six months after it becomes a law.
| Jan. 07, 2026 | REFERRED TO BANKS |
| Feb. 03, 2025 | REFERRED TO BANKS |
STATE OF NEW YORK ________________________________________________________________________ 4129 2025-2026 Regular Sessions IN SENATE February 3, 2025 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to full disclosure of interest rate on unsolicited mail-loan checks The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 2 of section 9-t of the banking law, as amended 2 by chapter 184 of the laws of 2022, is amended to read as follows: 3 2. Any lending institution which issues mail-loan checks shall: 4 (a) include on the face of each check issued to a non-customer a writ- 5 ten statement, in legible type reading "ONE FORM OF VALID PHOTOGRAPHIC 6 ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash- 7 ing or accepting a mail-loan check for deposit may require more than one 8 form of identification; 9 (b) make no reference on the outside of the envelope containing a 10 mail-loan check that indicates that a check is enclosed within such 11 envelope; 12 (c) provide that all mail-loan checks shall be non-transferable; [and] 13 (d) include the transaction fee and interest rate and an expiration 14 date of not more than six months on the mail-loan check, as well as any 15 additional information that the superintendent may require; and 16 (e) provide in legible type on the front page of the solicitation 17 letter, the interest rate or rates to be applied to such loan, and 18 provide a table demonstrating the total cost of such loan at incremental 19 dollar amounts, at the offered interest rate, over incremental periods 20 of time of six months, one year, and three years. 21 § 2. This act shall take effect on the sixtieth day after it shall 22 have become a law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07656-01-5